Emerald | Accounting, Auditing & Accountability Journal

Reflections and projections: 25 years of interdisciplinary perspectives on accounting, auditing and accountability research

James Guthrie, Lee D. Parker — 2011-12-30 00:00:00.0

Abstract

Purpose – This editorial reflects on 25 years of AAAJ and on the interdisciplinary accounting movement and its future direction. It emphasises the Editors' commitment to encouraging the application of a broad range of theories and research methodologies as well as their ongoing support for diversity as a defining feature of AAAJ. This includes the wider community, which includes the APIRA conference attendees, Special Issue editors and the many individuals who have all played an important part in AAAJ's 25 years. The Editors continue to urge interdisciplinary accounting researchers to undertake innovative research and be both original and creative, thereby avoiding a narrowness that is an increasing feature of North American economics based accounting research. The important role of academic researchers is highlighted in not simply observing, but also engaging in and constructing an enabling accounting. The purpose here is to reflect on the past and to look towards the future. Design/methodology/approach – The paper employs a literature-based analysis and critique. It also identifies via empirical data the field of scholarship associated with AAAJ and evidence of the patterning of recent publications. Findings – This editorial draws together various themes in our previous AAAJ editorials and highlights milestones in the journey to our current position. It identifies various challenges that confront interdisciplinary researchers in the globalised academic community. It also points to the need for researchers to reflect on their motivation, informing theories and values to ensure that their academic endeavours are making a contribution to practice, policy and a wider societal good. Practical implications – It is hoped the practical and research issues explored in this editorial will invoke more interdisciplinary perspectives on accounting and the accounting profession, and assist scholars in reflecting on their academic studies and potential challenges facing them. Originality/value – This editorial reflects on the developments in AAAJ over the past 25 years and discusses various contributions. It also celebrates the top ten authors, topics, Special Issue editors, and the last ten AAAJ Best Paper awards.

Accounting change: explaining the outcomes, interpreting the process

Mariannunziata Liguori, Ileana Steccolini — 2011-12-30 00:00:00.0

Abstract

Purpose – The issue of accounting change, why and how accounting evolves through time and within specific organisational settings, has been addressed by an important body of literature. This paper aims to explain why, in processes of accounting change, organisations confronting similar environmental pressures show different outcomes of change. Design/methodology/approach – Drawing on archetype theory, the paper analyses the case of two Italian local governments. Comparative case studies were carried out, reconstructing a period of 15 years. Findings – Although confronted with similar environmental pressures, the two cases show two different patterns of accounting change, where only one case is able to finally reach radical change. Accounting change can be prompted by external stimuli, but, once the change is prompted, the outcomes of the change are explained by the dynamics of intra-organisational conditions. Originality/value – The study contributes to accounting change literature by adopting an approach (i.e. archetype theory) that overcomes some of the limitations of previous studies in explaining variations in organisational change. Through this, the authors are able to explain different outcomes and paces of accounting change and point out the intra-organisational factors also affecting them in the presence of similar environmental pressures. A specification of the theoretical framework in a particular setting is also provided.

Disability and the professional accountant: insights from oral histories

Angus Duff, John Ferguson — 2011-12-30 00:00:00.0

Abstract

Purpose – This paper aims to explore the intersection of disability and accounting employment. Design/methodology/approach – The paper uses oral history accounts of 12 disabled accountants. The authors investigate narrators' experiences of being disabled people and professional accountants, identify the barriers they encounter in professional employment, and how they (re)negotiate professional work. Findings – The narrators' accounts are complex and diverse. The narratives record a discourse of success, offset by the consistent identification of social and environmental barriers relating to limited opportunities, resources, and support. Originality/value – The paper develops the limited research on the relationship between disability and the accounting profession, expands the limited literature on disabled professionals' experience of work, provides voice for disabled accountants, adds to the limited oral histories available within accounting, and augments the accumulated literature considering the accounting profession and minorities.

Carbon reporting: does it matter?

Matthew Haigh, Matthew A. Shapiro — 2011-12-30 00:00:00.0

Abstract

Purpose – This paper aims to identify the significance of carbon emissions reporting for investment banking. Design/methodology/approach – Functionaries at selected financial institutions in the USA, Europe and Australia are interviewed. Carbon emissions reporting methods used by companies are identified using desk research. A proposal from a non-state actor called the Climate Disclosure Standards Board for general-purpose carbon emissions reporting is assessed using participant observation. The data gathered are interpreted through a semiotic lens, with focus on the placement, content, and style of reporting, and combining with a functional perspective of decision-usefulness. Findings – Environmental investing for well-diversified investors constitutes a discourse of the imaginary. Financialised constructs have been used to represent heavier polluters as superior “carbon performers” (the imaginary), while reported variations in industrial carbon emissions levels have been ignored in asset allocation decisions (the actual). Environmental investing is conditioned by four factors: exclusion of carbon emissions in constructions of firm value; diverse methods used by firms to calculate, measure and report carbon emissions; the appropriate venue for such reporting; and the quantum of data contained therein. Carbon emissions reports have had some use in investors' assessments of firms' corporate governance. Practical implications – Risk assessment is likely to be erroneous if using measures that deflate carbon emissions by firms' revenues. This may not matter much as carbon reporting in the hands of investors appears linked to imaginary signification more so than actual portfolio decisions. Originality/value – The paper contributes to work on the participation of institutional investors in environmental investing and establishes a foundation for future research in general-purpose reporting on greenhouse gas emissions. Supplemented by desk research, the study uses interviews to provide insights into investors' motivations for environmental investing, and how they use company-issued carbon reports.

Stakeholder responses to the National Greenhouse and Energy Reporting Act: An agenda setting perspective

Sumit Lodhia, Nigel Martin — 2011-12-30 00:00:00.0

Abstract

Purpose – This paper aimed to explore the submissions made to the National Greenhouse and Energy Reporting (NGER) policy paper by corporations and other stakeholders. It also sought to establish whether broader climate change issues were addressed in the context of the submissions. Design/methodology/approach – The agenda-setting framework was utilised to provide the theoretical perspective for the study. This research applied a combination of concept analysis and mapping, and content analysis, of the submissions using the Leximancer software tool. Findings – The study found a divergence in the responses of corporations and other stakeholders, with the former focusing primarily on the NGER policy paper, while the latter presented significant concerns over carbon pollution and climate change, an issue that was not the primary concern of the policy paper. Moreover, corporations also acknowledged the close link between the NGER process and a future emissions trading scheme, and expressed concerns over the development of a mechanism that would put a price on carbon. Research limitations/implications – The paper contributes to the limited literature on carbon accounting and reporting in relation to both the local and international context. Moreover, an agenda-setting perspective provided a suitable lens for understanding the NGER submissions process and its role within the broader climate change policy area in Australia. Practical implications – Policies are influenced by key players and their familiarity with these policies could lead to successful implementation. The establishment of the NGER legislation was deemed successful, despite concerns raised in the submissions. This was because the policy used corporate reporting as a means of assessing accountability for carbon emissions. This finding has implications for other nations seeking to develop mandatory carbon reporting. Originality/value – The paper has built further explanatory potential of the agenda-setting framework, provides direct evidence in relation to stakeholder submissions to prospective environmental legislation, and adds to the use of combination methods that can be utilised for effectively analysing stakeholder submissions on major policy questions and issues.

Evidence of an expectation gap for greenhouse gas emissions assurance

Wendy Green, Qixin Li — 2011-12-30 00:00:00.0

Abstract

Purpose – This paper aims to examine whether an expectation gap exists between different stakeholders (i.e. emissions preparers, emissions assurers and shareholders) in relation to the assurance of greenhouse gas emissions. Further, the paper seeks to explore whether stakeholder expectations are influenced by the uncertainties inherent in the assurance engagement for different industry sectors (i.e. greenhouse gas emitter or greenhouse gas user entities). Design/methodology/approach – An experimental survey was used to address the stated aims. Three stakeholder groups: shareholders, greenhouse gas emissions preparers and assurers, completed a survey based on the greenhouse gas emissions assurance for either an emitter or user entity. Findings – The results provide support for the existence of an expectation gap in the emission assurance setting. Fundamental differences were identified between the stakeholder groups in relation to the responsibilities of the assurer and management; as well as the reliability and decision usefulness of the emissions statement. Moreover, the extent of the gap was found to differ between user entity engagements and emitter entity engagements. Research limitations/implications – The paper highlights the need for the assurance services profession and assurance standard setters to consider mechanisms to enhance the effectiveness of communicating the assurance function in this setting in order to enhance the credibility and social value of emissions assurance. Originality/value – The paper is the first to examine the expectation gap in the greenhouse gas emissions assurance context. It thereby also contributes to the literature on the expectation gap in the assurance of non-financial information. Moreover, the research findings provide standard setters with unique insights into areas to consider as they work toward the development of an international assurance standard for greenhouse gas emissions statements.

Carbon footprints and legitimation strategies: symbolism or action?

Sue Hrasky — 2011-12-30 00:00:00.0

Abstract

Purpose – Climate change and carbon footprints are among the most urgent concerns facing society and are key issues of corporate responsibility. The purpose of this study is to assess whether Australian companies have adjusted their footprint-related disclosure responses. Adopting a legitimacy perspective, a key aim is to assess whether pragmatic or moral legitimation approaches dominate by determining whether disclosure tends to be more reflective of symbolism or of apparent behaviour. Design/methodology/approach – Content analysis of the sustainability and annual reports of the ASX's Top 50 companies is undertaken to compare carbon footprint-related disclosures in 2008 and 2005. Their extent and nature (action or symbolism) and the use of attention-attracting devices are reported for the more carbon intensive and less carbon intensive sectors. Findings – Footprint-related disclosure rates are increasing, and disclosure is being signalled more prominently. However, while carbon-intensive sectors appear to be pursuing a moral legitimation strategy underpinned by substantive action, the less intensive sectors are relying more heavily on symbolic disclosure. Research limitations/implications – The sample size is small and comprises only large listed Australian companies. Practical implications – While the carbon-intensive sectors appear to be taking encouraging actions, a regulatory response may be required for the less carbon-intensive sectors to take advantage of their market power to facilitate cooperative carbon reduction with broader constituent groups. Further, incentives for the carbon-intensive sectors may be needed to encourage ongoing efforts to bridge the carbon chasm that is emerging. Originality/value – This study appears to be the first to provide direct Australian evidence on favoured legitimation tactics by assessing the symbolic versus behavioural management implicit in carbon footprint-related disclosures.

Restructuring questions

Lyn Daff — 2011-12-30 00:00:00.0

Abstract

Purpose – Reflections on pertinent questions of accountability that should be asked when restructuring occurs in tertiary education. Design/methodology/approach – Fictional poem. Findings – Meditation on the impact of restructuring in tertiary education; what drives it and what are the results? Research limitations/implications – Stimulates thought about the restructuring process and how it is approached, as well as the cost and benefits of restructuring. Originality/value – An individual comment on issues often overlooked in restructuring.

The conference paper

Lee Parker — 2011-12-30 00:00:00.0

Abstract

Purpose – A satire on conference paper presentations. Design/methodology/approach – A poetic critique of conference presenters and their occasional failure to engage with their audience. Findings – What may be fascinating and of assumed and obvious importance to a research presenter may be quite obscure to their audience, who nonetheless participate in the ritual of conference attendance and polite “listening”. Research limitations/implications – The reader may discover even more meaning in this poem than its original author envisaged. Originality/value – A poignant reminder of the perils of many conference presentations.

The first flush of …

Lee Parker — 2011-12-30 00:00:00.0

Abstract

Purpose – A satire on academic school board meetings. Design/methodology/approach – A poetic reflection on the proclivity of academics for lengthy meeting debates on matters of no importance. Findings – Meetings tend to attract and sustain lengthy speeches and debates that often produce little beyond the self-amusement of participants who enjoy debate and the boredom of those who feel obliged to attend. Research limitations/implications – The reader is invited to identify with any of the participants in such occasions. Originality/value – A satirical reflection on the actors, motivations and consequences of time-consuming academic meetings.

Sponsorship

Dianne Dean — 2011-12-30 00:00:00.0

Abstract

Purpose – To investigate a possible funding solution for a government department. Design/methodology/approach – Humorous fiction. Findings – Funding may need to be sourced from non-traditional and/or commercial bodies provoking discussion on ethical decision-making. Research limitations/implications. – Limitation in funding sources may result in reduction in ethical standards. Originality/value – Humorous story designed to provoke thought.

Publisher’s note

2011-12-30 00:00:00.0

Literature and insights

2011-12-30 00:00:00.0